Now that 2018 is here, California has once again raised minimum wage for
the second year in the row. The increase will move the minimum wage pay
rate by .50 cents to $10.50 an hour at businesses with less than 25 employees.
For businesses with more than 25 employees, the rate will move up to $11 an hour.
Under California’s minimum wage law, wages will continue to rise
incrementally for the next several years. By 2022, employees who work
for large companies are expected to earn $15 an hour, while employees
working at smaller companies will reach $15 an hour by 2023. However,
the expected increases can be delayed if California’s economy becomes shaky.
However, some California cites have already taken measures to pay their
minimum wage workers more. In Los Angeles, Pasadena and Santa Monica,
the minimum hourly wage has already been set at $12 for large companies
and $10.50 for small firms. The rates will increase to $13.25 and $12
in July, and should reach $15 for large companies by 2020 and 2021 for
The minimum wage will increase in Bay area cities as well. Palo Alto will
raise their current $12 minimum wage to $13.50 on January 1st. Mountain
View’s minimum wage will move from $13 to $15 on January 1st as well.
Those who are in favor of the minimum wage increase say it will help shrink
the growing divide between the rich and poorer working families who continue
to struggle with California's high housing costs. However, business
groups have argued that a $15 minimum wage will force smaller businesses
to close, ultimately resulting in fewer job opportunities for unemployed
The minimum wage increase will give the average full-time worker an extra
$1,040 in annual income. For businesses, the increase means they must
account for thousands of dollars in additional payroll costs.
For many though, the minimum wage increase is not realistically enough
to meet their growing economic expenses. According to Larry Gross from
the Coalition for Economic Survival, the new changes will not have a big
enough impact to relive the state’s current housing crises that
many low-earing workers must face.
Do you have more questions about minimum wage laws in California? We can help. Contact our Hollister employment law attorney
to schedule a free consultation today.